In spite of the limited inventory of homes for sale, the local residential real estate market continues to exceed expectations. The 328 homes sold in April is another double digit increase and home sales now stand at an increase of 23.4% for the year. And the fact that this is being done with modest sustainable price increases is most important.
We noticed that Core Logic stated that U.S home prices have increased 10.5% comparing March 2013 with March 2012. Two of the states with the highest price appreciation were Nevada 22.2% and Arizona 16.8%; the same two states that experienced double digit price increases in 2003 – 2005 followed by double digit price decreases in 2007 – 2009 and now they go again! In our market the average price was up 6.7% in the first quarter of 2013 compared to the first quarter of 2012 and in our market that is a serious increase. Thankfully we have never experienced the roller coaster ups and downs of some of our neighbors.
There are currently 1,211 homes listed for sale in the Fort Collins area but 577 of them are under contract leaving a net supply of just 634 homes. This is a 5% improvement over last month but the next few months are when the demand peaks and buyers are going to have to scramble to find the right home and get it under contract.
In the four month period of May through August last year there were 1,532 closed sales so the demand jumps considerably compared to the first four months of the year. At the end of April last year there were 1,483 homes on the market; 552 were under contract leaving 931 net active listings. The inventory this year is down 30% from last year at a time when we need more homes to meet the demand.
The resale homes that closed in April were only on the market an average of 42 days until they received an acceptable offer and the year to date figure is now down to 69 days compared to 84 last year.
In Weld County sales were up 11.9% for the month and 16.5% for the year to date. The average selling price in 2013 is $217,384, an increase of 11.2%. In the southern portion of Larimer County including Loveland and Berthoud, sales in April were 17.8% ahead of last year and are up 23.7% for the year. The average selling price of $262,273 is up just 0.4% from last year.
In this difficult market, we encourage you to use the services of a professional Realtor. If you are considering selling your home you need to be right on top of the market and if you are a buyer, you are going to need representation and assistance.